Uninsured Motorist Coverage (UIM) Auto Insurance (2023)

In a perfect world, every driver would have the proper amount of car insurance to cover all scenarios. Unfortunately, that is not the case, and many drivers take to the road with minimum insurance or none at all. Some people might even be left wondering, “Should I buy more than the minimum auto insurance”?

You could be left with hefty out-of-pocket expenses like medical and body shop bills. This is when uninsured or underinsured motorist insurance kicks in to cover you and your vehicle if you’re hit by an uninsured driver.

What is uninsured motorist insurance? Keep reading to learn the truth about uninsured motorist coverage and why it might be a good idea to add it to your policy. 

What is uninsured motorist coverage?

Uninsured motorist covers you and your vehicle if you’re in an accident with a driver who doesn’t have liability auto insurance or if you’re involved in a hit-and-run and don’t know the person who hit you. 

Uninsured motorist coverage pays for:

• Medical bills
• Lost wages
• Pain and suffering compensation
• Funeral expenses
• Car damage, in certain states

Many states require all drivers to carry uninsured motorist coverage, which is often bundled with underinsured motorist insurance. Underinsured motorist insurance is similar to uninsured motorists and will cover you in these same situations when the driver has insurance but not enough to fully cover the damage they caused. 

For example, if your medical bills total $30,000 and the driver who hit you has only $15,000 in bodily injury insurance coverage, an underinsured motorist policy will kick in and cover the remaining costs.

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Uninsured Motorist vs. Underinsured Motorist Coverage

Every insurance company has its own policies regarding uninsured motorist coverage.

Here are the four types of coverage often grouped together under uninsured motorist insurance:

• Uninsured motorist bodily injury (UM). UM covers you when you’re in an accident and the driver at fault does not have any car insurance. 
• Uninsured motorist property damage (UMPD). UMPD covers damage to your vehicle if it’s hit by someone without insurance. This type of insurance is required in many states.
• Underinsured motorist bodily injury (UIM). UIM covers you when another driver with inadequate insurance hits you and does not carry enough liability insurance to cover your medical bills, lost wages, etc. 
• Underinsured motorist property damage (UIMPD). UIMPD covers damage to your vehicle in the same situation.

By adding all of these coverages to your policy, you are better protected if you’re hit by a driver with inadequate auto insurance. 

How much uninsured motorist coverage do I need?

The minimum car insurance required in each state varies. If your state requires uninsured motorist coverage, you must purchase the minimum amount to drive legally. Usually, these amounts are the same as your liability coverage. 

Every state has different requirements for how much coverage drivers need. 

Uninsured Motorist Coverage Limits

Uninsured motorist coverage is usually expressed as two numbers, such as 100/300. 

This means that if you get into an accident you are covered for the following amounts:

• $100,000 bodily injury coverage per person
• $300,000 bodily injury coverage per accident

If you have this 100/300 policy and two passengers are injured in an accident caused by someone else, your maximum payout is $300,000. If this still isn’t enough to cover expenses, your health insurance will usually kick in to help.

State Laws for Uninsured Motorist Coverage

As mentioned above, many states require drivers to have uninsured motorist coverage in addition to liability insurance. 

The following states require some amount of UM coverage:

• Connecticut
• Illinois
• Kansas
• Maine
• Maryland
• Massachusetts
• Minnesota
• Missouri
• Nebraska
• New Hampshire
• New York
• North Carolina
• North Dakota
• Oregon
• South Carolina
• South Dakota
• Vermont
• Virginia
• Washington, D.C.
• West Virginia
• Wisconsin

If you live in one of these states, your insurance agent will help you to adjust your car insurance so you are properly covered.

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Is uninsured motorist coverage necessary?

If your state doesn’t require you to have uninsured motorist coverage, it is still a smart move to add it to your insurance policy. There are a few things to consider when deciding if it’s right for you.

Will health insurance cover bodily injuries in car accidents?

Some health insurance plans will cover drivers and passengers who have sustained injuries from a car accident. If you have a good health insurance plan, you might not need bodily injury coverage. But most of the time it is worth it. 

Uninsured motorist covers more than just medical bills, such as lost wages and money for pain and suffering. Do you need medical payment coverage on auto insurance? Health insurance doesn’t usually cover these expenses. If you have a high-deductible health insurance policy, it could be worth it to get uninsured motorist coverage.

Will my current car insurance policy cover vehicle damage?

Oftentimes, collision insurance will cover damage to your car when you’re hit by another driver. Collision insurance covers the majority of car accidents, not only those involving uninsured drivers.

So if you have collision insurance, you might not need to add uninsured motorists.

Are there many uninsured drivers in your state?

According to recent studies by the Insurance Research Council, approximately one in eight drivers is uninsured. This varies a lot by state.

Mississippi has the highest rate of uninsured drivers at almost 30%, while New Jersey only has 3% of uninsured drivers on the road. It can be hard to find cheap car insurance in New Jersey, as the monthly minimum liability costs are higher. 

Are hit-and-run accidents covered by uninsured motorist insurance?

Depending on your state, uninsured motorist insurance may or may not cover damages if you’re the victim of a hit-and-run accident. A hit-and-run accident is defined as a car accident where the at-fault driver leaves the scene without exchanging contact information or insurance. 

This can happen between two vehicles, when a vehicle hits a piece of property, and if a vehicle hits a pedestrian. 

The following states do not allow UMPD coverage for hit-and-run accidents:

• California
• Colorado
• Georgia
• Illinois
• Louisiana
• Ohio

In these states, you will need to add collision insurance to keep your vehicle protected. 

Should I buy UMPD coverage for property damage?

If your state doesn’t require UMPD coverage, you can protect your vehicle by having collision insurance. You don’t need both.

This is because collision coverage pays for damages to your vehicle no matter who is at fault. However, UMPD only pays for certain situations. Speak with your insurance representative to compare the cost of UMPD with collision insurance. 

According to the National Association of Insurance Commissioners, the average payout for a UMPD claim is $1,926.

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Understanding the Payout from an Uninsured Motorist Claim

Uninsured motorist claims work a little differently than collision insurance or a comprehensive claim for auto insurance. The UM amount you can claim is usually reduced by the amount of money you get from the other driver’s liability insurance. 

Here is a step-by-step example:

• Let’s say you have $100,000 of UM coverage and you only receive $50,000 from the at-fault driver’s liability insurance —  but your medical bills are $300,000.
• Your UM coverage will likely pay $50,000 ($100,000 minus $50,000 from at-fault driver), meaning you would still be responsible for $200,000 in medical bills.
• Most people won’t get the full UM payout of $100,000 plus the driver’s liability coverage of $50,000.
• In this situation, you might only receive $100,000 from insurance instead of the $150,000 you were expecting.  

Some states, like Connecticut, don’t allow insurers to deduct the payout based on the amount of the at-fault driver’s insurance. Using the example above, you would get a total $150,000 insurance instead of $100,000.

Other states, like Georgia, offer drivers a choice to add UM coverage to at-fault liability limits. There are many options for cheap car insurance in Georgia. 

How do I make an uninsured motorist claim?

You should contact your insurance company right away to file a claim if you’re been hit by another driver who doesn’t have any or enough car insurance. 

If you’ve been rear-ended by a driver who doesn’t have adequate insurance, you will need to file a UM claim with your own insurance company. Similarly, if you’re a pedestrian hit by a driver without proper insurance, you would also need to file a claim with your insurer — plus the driver’s insurance. Here are the 10 safest states for pedestrians in the U.S. Living in one of these areas could decrease your risk of having to file a claim as a pedestrian. 

Another common situation where you would need to file a UMPB claim is if your vehicle is parked and you discover it has been hit or damaged but have no idea who caused it. In this hit-and-run scenario, you would file a claim under your UMPD coverage. If you don’t have this coverage, you can also file a claim under your collision insurance.

Uninsured Motorist Coverage: The Bottom Line

Even if uninsured motorist insurance is not a requirement in your state, it is still worth considering. One in eight drivers takes to the road without adequate car insurance. If you’re hit by one of these drivers, you could be left with serious out-of-pocket medical expenses.

Uninsured motorist coverage helps pay for these expenses caused by another driver. Generally, it doesn’t cost much to add this coverage to your policy, and doing so could save you a lot of money. 

You should talk to your insurance representative to make sure you are protected against uninsured drivers. An insurance agent will also be able to tell you if you are required by law to have uninsured motorist coverage or not.

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